Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

What is the correct tax rate to charge a customer on the sale or lease of motor vehicles, watercraft or outboard motors?

On the sale of a titled motor vehicles, watercraft or outboard motors, the tax rate would be the rate in the county of residence of the purchaser.

On the lease of titled motor vehicles, watercraft or outboard motors, whether the lease is paid by one upfront payment, (no monthly payments), or by a stream of payments, the tax rate to apply is the rate in the county that is the primary property location of the vehicle(s) or watercraft. This may be the county of residence of the lessee, or in the case of multiple vehicles leased to one person and the vehicles are used in several counties, the county where the vehicles are garaged overnight would apply.

On the sale or lease of a documented watercraft, the tax rate to apply is the rate where the customer takes possession of the watercraft. Any subsequent taxable charges on the lease will be sourced to the primary property location for the period in which the charges are incurred.

“Primary property location” means an address for tangible personal property provided by the lessee or renter that is available to the lessor or owner from its records maintained in the ordinary course of business, when use of that address does not constitute bad faith.

There are some sales of titled or untitled vehicles, watercraft, outboard motors or other items of tangible personal property made by vendors or dealers that are not “licensed” dealers under sections 4517 or 1547 of the Ohio Revised Code. An example would be a vendor of all purpose vehicles or off-road motorcycles that is “registered” with the Bureau of Motor Vehicles, or a vendor that sells boats less the 14 feet in length. The tax would be collected by the vendor/dealer and reported and paid to the State of Ohio on the vendor’s sales tax return. The vendor/dealer may not be required to obtain a title for the item sold, but the customer would be required to obtain title from the Clerk of Courts. The tax rate collected by the dealer/vendor would be (1) the county of the location of the vendor if the customer takes possession at the vendor’s place of business, or (2) the county where the vendor/dealer delivers the item and possession is taken by the customer. If the purchaser’s county of residence has a higher rate of tax than the county of the vendor/dealer, credit will be allowed for taxes paid to the vendor, and any additional tax due will be collected by the Clerk of Courts at titling.

The following forms can be downloaded on from the ODT Web site at Tax Forms: